Culled from Castle weekly website

LASG draws battle line with building approval violators - threatens to seal up properties in Gbagada, Magodo, New Isheri and other Schemes for illegal change of use

Violators of building approvals in Lagos State are in for a rough time. The State Government through the Ministry of Physical Planning and Urban Development recently issued a public notice instructing property owners in Gbagada Scheme 1 and 2 and other schemes who may have converted the use of their properties from the one originally approved by the State Government to revert or risk having their properties sealed or have the Right of Occupancy on such properties revoked by the Governor.

image of a red crossThe notice stated that the Ministry of Physical Planning and Urban Development in fulfilling its statutory responsibilities of ensuring an orderly and sustainable development with a view to promoting aesthetically pleasing and amendable development and also to ensure that development within the state are in accordance with the adopted plan is mindful of an increase in contravening conduct of property owners, building developers and occupants in Gbagada Residential Scheme 1 and 2.

Such contraventions according to the notice relates to converting residential properties to commercial properties and place of worship and construction of buildings in violation of building approvals as well as general violation of existing Urban and Regional Planning Laws of the State.

Explaining that all titles in property are founded on a Right of Occupancy evidenced in a Certificate of Occupancy, the State Government by the notice reminded property owners that special terms and conditions stated in the document with obligations on the title holder requires that property owner conform to all rules laid down from time to time in regard to the location of buildings and town planning regulations. And also that clause 12 of the document requires its holder not to erect or build or permit to be erected or built on the said land any buildings other that those covenanted to be erected by virtue of this Certificate of Occupancy and not to make or permit to be made any addition or alteration to the said building to be erected in accordance with plan and specifications approved by the Governor or other officer appointed in that behalf.

The State Government by the notice however informed that it shall forthwith exercise the power of revocation pursuant to the Land Use Act for the aforesaid contraventions or breaches of special terms and conditions attached to a Right of Occupancy without further recourse to any title holder.

To avoid such a penalty, affected property owners, developers or occupants of over 30 properties in Gbagada Scheme 1 and 2 which includes Banks, Schools, Churches and other business outfits are directed by the Ministry of Physical Planning and Urban Development to submit their development permits for verification or in the alternative revert to their original with effect from fourteen days from the day of service of the notice which was on the 20th of March 2009, after which their properties will be sealed in the event that they fail to meet up with the deadline.
Lagos State Commissioner for Physical Planning and Urban Development
TPL Francisco Bolaji
Abosede
Hon.Commissioner
Ministry of Physical
Planning and Urban
Development

Conspicuously listed in the notice as having contravened the development permit law are several banks which have branches along the Gbagada Expressway which has in recent times become a location of choice for business outfits.

The Lagos State Commissioner for Physical Planning and Urban Development, Town Planner Francisco Abosede in a telephone chat with Castles explained that property owners who can present relevant documents that sufficiently shows that they were issued development permits for the current use of their properties will be spared. He gave the example of Grace School in Ajidigan Street which was of the properties listed in the notice but have been able to establish that they were issued a development permit for a school and so they are no longer affected.

TPL. Abosede also explained that affected property owners cannot apply again for a Change of Use permit as the Governor since June 2007 has outlawed such approvals through an executive order. “It is only property owners that have been able to get approval for Change of Use before the ban that would have the opportunity to present such documents for verification”, he added.

The Commissioner said there are areas in the Gbagada scheme that have been earmarked for commercial purposes like petrol stations, schools and banks. “We also have areas reserved as open space to add to the beauty and aesthetics of the area. As a government, we have a responsibility to ensure sanity and compliance to these provisions.

He added that residential associations of other schemes have continued to write the State Government on acts contravening planning laws of the state being perpetrated by some property owners. As such, the Commissioner said other schemes like New Magodo, New Isheri and others would soon be visited to ensure compliance to planning laws. “Every month, publications will be made in the dailies, informing people to revert to originally approved use as this is the beginning of the process”, he concluded.

Apart from the immediate threat of revocation of Certificate of Occupancy or demolishing of the buildings affected, some commentators have opined that the actions of the State Government has far reaching consequences for real estate prices in the short and long term. Some estate practitioners have in recent times accused the banks, which were rolling out branches in all locations of the state, as being responsible for pushing up rents. With their superior bargaining power, banks were able not only to offer higher rents but also were able to pay upfront for longer terms. It was not unusual for the banks to pay up to 15 years rent in advance. Apart from high end areas like Ikoyi and Victoria Island, these practices were extended to areas in the Mainland, including Gbagada.

If the Government seeks to curb this by insisting on a ban on 'change of use' then bank expansion will be restricted for want of approval. This in turn should reduce the escalation of rents in areas targeted by the banks. Others have argued that due to the present credit crunch, growth in bank branches may not only have slowed, it might have stopped altogether and the banks focus more on funds mobilisation. This is shutting the stable door after the horse has bolted, they argue.

Ministry of Physical Planning and Urban Development
Conversion of Residential Houses in Gbagada Scheme 1 and 2 and Other Scheme Area

Public Notice
Ministry of Physical Planning and Urban Development in filling its statutory responsibilities to ensure:

1. an orderly and sustainable development;
2. safety, adequate health and sanitation;
3. promotion of aesthetically pleasing and amendable development;
4. preservation of areas outstanding natural beauty;
5. that development are in accordance with the adopted plan; is mindful of an increase in contravening conduct of property owners, building developers and occupants in Gbagada Residential Scheme 1 and 2.

The contraventions relate to:

1. converting residential properties to commercial premises place of worship
2. construction of building in violation of Building Approvals
3. general violation of the Urban and Regional Planning Laws.

All titles in property are founded on a Right of Occupancy evidenced in a Certificate of Occupancy.

It is a special condition of such Right of Occupancy that the holder enjoys the above rights subject to clause known as the Special terms and conditions stated in the documents with obligations on title holder property as follows:

Clause 11: To conform to all rules laid down from time to time in regard to the location of buildings and town planning regulations.

Clause 12: Not to erect or build or permit to be erected or built on the said land any building other than those covenanted to be erected by virtue of this Certificate of Occupancy and not make or permit to be made any addition or alteration to the said building to be erected in accordance with plan and specifications approved by the Governor or other officer appointed in that behalf.

Take Notice: that the aforesaid contraventions constitute a breach of this special terms and conditions enshrined in the Right of Occupancy

Take Notice: that section 28(5)b of the Land Use Act states, “The Governor may revoke a Right of Occupancy on the ground of……….
(b) a breach of any term contained in the Certificate of Occupancy or any special contact under Section 8”

NOW TAKE FURHTER NOTICE- that the Lagos State Government shall forthwith exercise the power of revocation pursuant to the Land Use Act for the aforesaid contraventions or breaches of special terms and conditions attached to a Right of Occupancy without further recourse to any title holder.

Ministry of Physical Planning and Urban Development/ Lagos State Government hereby directs that property owners/ developers/occupants of the following properties in Gbagada Scheme 1 and 2 are to:

• Submit their development permits; and
• Revert to their original use with effect from fourteen (14) days from the day of service of this Notice for reasons given, otherwise will have their properties sealed.

List of affected Properties

1. OASIS PLOT 298 IKORODU ROAD
2. UBA PLOT 285 GBAGADA EXPRESSWAY
3. UBA PLOT 300 IKORODU ROAD
4. MAXHEAL PHARMACEUTICAL NO.7 SWAYER CRESCENT, GBAGADA
5. WINCOMM AND MEDIA ASSOCIATES NO. 5 SAWYER CRESCENT, GBAGADA PHASE 1
6. OKUWOBI MEDICAL CENTRE NO.6 OLUJOBI CRESCENT, GBAGADA
7. ARCHARISS ENGINEERING CONSTRUCTION NO. 16 OLUJOBI STREET GBAGADA PHASE 1
8. NIIT AND CISCO SYSTEMS 141 C& GBAGADA EXPRESSWAY
9. LAHAMS DRUG COMPANY & GBAGADA EXPRESSWAY
10. ISN HOUSE AND ACUCHEK ACTIVE 143 a &b GBAGADA EXPRESSWAY
11. ECOBANK PLC 208 GBAGADA EXPRESSWAY
12. UNITY CAPITAL ASSURANCE PLC 173 GBAGADA EXPRESSWAY
13. ARKSEGO 174 GBAGADA EXPRESSWAY
14. REGENCY ALLIANCE INSURANCE 176 GBAGADA EXPRESSWAY
15. LIGHT HOUSE ACADAEMY 1, EBUN STREET, OFF GBAGADA EXPRESSWAY
16. MOBILE EXCETRA 283 GBAGADA EXPRESSWAY, GBAGADA
17. DIVINE FORTUNE 284, GBAGADA EXPRESSWAY
18. AIMS ASSETS MANAGEMENT LIMITED. 3, MABINUORI STREET
19. RCCG (LIFE OF PARISH) 5 MABINUORI STREET
20. FIRST ALLIANCE 25 FOLA JINADU CRESCENT
21. GLORIOUS BEGINNERS SCHOOL AJIDIGAN STREET
22. POLAK GROUP 7, JINADU CRESCENT
23. RCCG( LIFE SPRING PARISH) PROPERTY BASIDE OGOOLUWA PRIMARY SCHOOL, GBAGADA SCHEME
24. DRAIKLINAS 5, ENNICE CLOSE OFF LANKE AWOLOKUN STREET
25. KAR ROX COMPUTER CENTRE 294, GBAGADA EXPRESSWAY
26. ARCHITRAVE NIG. LTD. 26 IDOWU OLAITAN STREET
27. TRANS ROYAL COURIER GBAGADA
28. THE ROOT EXCLUSIVE (a&b) LANRE AWOLOKUN STREET
29. SEPHINE- PAT NURSERY & PRIMARY SCHOOL, 2 , FOLA JINADU STREET
30. IZAHRUL- HAD SCHOOL 27 AYODEJI OTEGBOLP, ST. GBAGADA
31. TRANEX 282 GBAGADA EXPRESSWAY
32. GRACE SCHOOL AJIDAGAN STREET
33. CHRIST THE REDEEMERS’S SECONDARY SCHOOL 3, EUNICE CLOSE GBAGADA
34. 3R, TECHNOLOGY 141d GBAGADA EXPRESSWAY
35. TIMELESS COURAGE PUBLISHING LTD. 144 GBAGADA EXPRESSWAY
36. CORONA SCHOOL GBAGADA OLUJOBI CRESCENT
37. AFRIBANK REGISTRARS 2a, GBAGADA EXPRESSWAY
38. SHALLOM INTERNATIONAL CHRISTIAN CHURCH 30, FOLA JINADU CRESCENT.
39. ALL OTHER STRUCTURES ILLEGALLY CONVERTED BUT NOT IN THE ABOVE LIST

Please be accordingly notified and advised Dated in Lagos this 20th of March 2009.